As you head into retirement, you have many years ahead of you to enjoy your newfound freedom. If you are considering purchasing a new home to accommodate your new lifestyle, you are not alone.
In 2019, nine out of ten Baby Boomers said that they were looking to upgrade from their current homes, while a smaller number of seniors were hoping to stay in their homes longer and downsize later in life.
But making such a big decision at this point in your life requires a lot of thought. The last thing you want to do is rush into the purchase and end up making a mistake that you will regret for years to come.
5 Common Mistakes You Want to Avoid When Buying a Retirement Home
When it comes to retirement, you have to consider not just your immediate future but the rest of your life. You want to be sure that the home you buy will meet all of your needs without breaking the bank.
This may seem like the time to buy your “dream home,” but there are many things to consider first.
Here are five common mistakes to be mindful of when purchasing your retirement home:
1. Getting Caught Up in the Location
When you retire and are no longer tied down by a job, it might seem like the perfect opportunity to move to a more desirable destination.
However, there are drawbacks to making such a dramatic move.
For one thing, choosing a home for its location may take you much farther away from your family than you would like to be.
Secondly, a new location comes with a new and unfamiliar lifestyle. A sunny locale may seem great, but the change in climate and culture may be a bit of a shock. Moving to the country might sound splendid, but you may find that your property requires a lot more upkeep.
If you are set on changing scenery, try renting in the area for a year or so before making a commitment.
2. Putting All Your Cash into the House
If you are currently in the position of having paid off any previous mortgages and debts, you are probably hoping to stay that way for the rest of your life. But if you invest all of your cash into the purchase of the house, you could be in trouble when unexpected expenses pop up.
Instead, make a large down payment in cash and mortgage the rest. Your best option is to keep some money available for unforeseen maintenance issues or sudden health problems.
3. Forgetting About Future Finances
Once you leave your job, you will not have the same kind of income as before.
Make sure that any mortgage payments you have to make can still be maintained at this lower-income level if needed.
4. Choosing a Home That Is Not Made for Aging
You need to be aware of how well your retirement home is set up to handle your needs as you age. For example, a large house with lots of stairs could be difficult to maneuver in later on.
If you buy an unsuitable house, then you will end up selling or paying a lot of money to upgrade it.
Look for a house that is designed thinking about accessibility or that can easily be modified to accommodate your needs.
5. Getting Your Priorities in the Wrong Order
The common trend in all of the above mistakes is focusing on the “dream home” rather than something that works for your particular lifestyle.
When you purchase a retirement home, you need to think about what matters most to you and what you want your lifestyle to look like. Do you want to be close to family? Do you need space for others to stay over? Are you close to medical facilities or grocery stores?
How to Choose the Right Home for Retirement
When purchasing yourself a home for retirement, it is important to think about the long-term outcome of your decision.
Investing in an expensive or inconvenient property will only cause problems down the road. You are better off making a careful purchase that will satisfy all of your needs and desires over the years.
Dayton, Ohio has become a recently popular place for retirees to purchase homes in active lifestyle communities. Oberer Homes builds communities just like these, and we have plenty of housing options available.
Wondering if a retirement home in Dayton is the right choice for you? Learn more about Oberer homes.
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